Raleigh Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2014, and is now considering converting to the dollar-value LIFO retail inventory method. Management requested, during your examination of the financial statements for the year ended December 31, 2016, that you furnish a summary showing certain computations of inventory costs for the past three years. Available information follows:

a.	The inventory at January 1, 2014, had a retail value of $42,000 and a cost of $32,690 based on the conventional retail method.
b.	Transactions during 2014 were as follows:

	Cost			Retail
Gross purchases	$	236,780		$	460,000
Purchase returns		6,200			23,000
Purchase discounts		4,700
Gross sales					430,000
Sales returns					6,000
Employee discounts					5,000
Freight-in		27,000
Net markups					22,000
Net markdowns					23,000

	Sales to employees are recorded net of discounts.
c.	The retail value of the December 31, 2015, inventory was $53,045, the cost-to-retail percentage for 2015 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2015, price level.
d.	The retail value of the December 31, 2016, inventory was $47,170, the cost-to-retail percentage for 2016 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2015, price level.

Required:

1.

Prepare a schedule showing the computation of the cost of inventory at December 31, 2014, based on the conventional retail method. (Amounts to be deducted should be indicated by a minus sign.)

	Cost	Retail	Cost-to-Retail Ratio
Beginning inventory
		0
Cost-to-retail percentage
Goods available for sale	$0	0
Estimated ending inventory at retail		$0
Estimated ending inventory at cost

2.	Prepare a schedule showing the computation of the cost of inventory at December 31, 2014, based on the LIFO retail method.

	Cost	Retail	Cost-to-Retail Ratio
Beginning inventory
Goods available for sale (excluding beginning inventory)
Goods available for sale (including beginning inventory)	0	0
Cost-to-retail percentage
Estimated ending inventory at retail		$0
Estimated ending inventory at cost

3.

Calculate the cost of inventory for December 31, 2015 and 2016, based on the dollar-value LIFO retail method.

Total ending inventory at dollar-value LIFO retail cost, 2015 =
Total ending inventory at dollar-value LIFO retail cost, 2016 =